Item Reference Author Name & Role Nigel Lister –Vice Principal - Curriculum Name of report 2014/15 Fees Policy Attachments 2014/15 Fees Policy 1 Introduction and purpose To appraise of the proposed fees policy for the 2014/15 academic year 2 Description The fees policy for 2014/15 is proposed in light of significant cuts to the College’s grant funded allocations and to better align the College’s fees structure to other college’s in the region. Key changes to the 2013/14 Fees Policy are: 3 Removal of fees for 24+ Advanced apprentices, as a result of the Government’s February 2014 decision to cease charging fees to these learners A proposed increase in part-time HE fees from £2,500 to £2,750 and an increase in full-time HE fees from £5,000 to £5,500 An increase in 24+ Loan fees as part of a process of charging fees at the national funding rate over the next two years. Key implications Financial Implications The major financial implication is that circa £1.3m of college income is now dependant on loans for both HE learners and learners aged 24+ who wish to study a programme at Level 3 or above. Risk Implications Loans funding pose a significant risk to income. Increased marketing activity will take place over the next few months to ensure that potential learners are fully informed of loan options available to them. Dedicated support is also available at all marketing events and training has taken place within the IAG team. Training events will continue to take place within each faculty to ensure that curriculum staff are also aware of the criteria for loans and are able to signpost potential learners to dedicated advice and guidance. 4 Recommendations to Governors Board members are recommended to receive and accept the policy 1 Northumberland College Fees Policy 2014/15 2 Fees Policy 2014/15 1. Introduction 1.1. The purpose of this policy it to outline the College’s policy and approach in regards to fees associated with tuition for the period 1st August 2014 to 31st July 2015 (the 2014/15 Academic year). 1.2. This policy covers Further Education, Higher Education, school provision, commercial work and international students. 1.3. The College aims to optimise income from fees by adopting a market driven approach to setting fees, but also wherever possible to take account of an individual’s ability to pay. 1.4. The College has a policy of equal opportunities and seeks to ensure that arrangements for fees and charges are consistent with this. 2. The National Fee Framework (Further Education Provision) 2.1. For funding purposes the eligibility of the learner must be established at the start of the programme. In order for a learner to be eligible for Skills Funding Agency or Young People’s Learning Agency (to be referred to in the rest of this document as ‘Agency’) funding for their learning programme, the learner must have the legal right to be resident in the United Kingdom at the start of their programme. 2.2. The national fee framework assumes that all learners other than those eligible for fee remission and those learners aged 16-18, are charged a tuition fee as a contribution. This assumed fee will, where relevant, be reflected in a reduction of the funding payable for the programme by 50% of the national base rate. This is part of the wider strategy “to raise the contribution of employers and learners who can afford to pay in order to redirect funds to support growth in priority areas of learning”. Learner Responsive Funding Models 2.3. As set out in the SFA and EFA Funding Guidance notes fee remission is applicable to all 16-18 year old learners, including those on part time programmes, and continues to be available for adult learners who meet the specified criteria (see Appendix 2). Where fees are remitted no charge will be made by the College to the learner as the fully-funded national funding rate will be payable. Where the learner is ineligible for fee remission they will be considered co-funded learners because it is assumed that the learner themselves will pay a tuition fee and the exam fee either themselves or via a student loan if they are following a Level 3 Certificate or Diploma course and are aged 24 years or older. Employer Responsive Funding Model 2.4. As set out in the Agency Funding Guidance 2014/15: Learner Eligibility, the rules on whether learners are fully funded or co-funded reflects Agency’s designated priority groups. For learners in lower priority groups employers are expected to make a contribution that recognises the benefit to them of the training that their employees are undertaking at public expense. Appendix 2 provides guidance on the priority groups eligible for full Agency funding. If learners are not included in this guidance they will be considered cofunded learners because it is assumed that the employer will pay a tuition fee. 3 3. The College’s Approach to Fees 16-18 and Adult Classroom based 3.1. Further Education course are fully funded for those aged 16 to 18 who are UK or European Union Nationals. 3.2. For the funding of FE it is proposed that for 2014/15 the overall level of fees charged to learners remains at 50% of the national base rate for the learning aim to reflect the national framework (Appendix 1). Cofunded fees are banded based on planned Guided Learning Hours (GLH). 3.3. Learners not eligible for fee remission will be expected to pay a fee on enrolment. 3.4. Those learners eligible for Fee Remission are listed in Appendix 2 3.5. Learners on Full Cost Recovery courses (i.e. courses for which no Agency funding is received) are not to have their fees waived under any circumstances. 3.6. Learners aged 24+ undertaking a course at Level 3 or above (excepting HE) will either need to apply for a 24+ Advanced Learning Loan or cover the costs of fees themselves. Workplace Based 3.7. The Agency assumption is that employers will pay at least 50% of the national rate for learners aged 19 and over who are not subject to fee remission (Appendix 2). Due to market forces, the College will regularly review its charges in relation to workplace activity to ensure competitive pricing. As a minimum, employers will be charged a suitable fee where funding provided by the Agency falls short of the cost of delivery of that provision. 3.8. Learners on Full Cost Recovery courses (i.e. courses for which no Agency funding is received) are not to have their fees waived under any circumstances. 3.9. Learners aged 24+ undertaking a Certificate or Diploma course at Level 3 or above (excepting HE) will need to either apply for a 24+ Advanced Learning Loan or cover the costs of fees themselves. Apprenticeships 3.10. Learners enrolled on Apprenticeship programmes are subject to complex funding arrangements that involve the participation of employers and fee criteria dependent upon a variety of factors. In line with funding agency guidance no fees shall be charged for 16-18 year old Apprentices. 3.11. The Agency assumption is that employers will pay at least 50% of the national rate for learners aged 19 and over. However due to market forces the College at present waives fees for Apprenticeship provision. Wherever possible employers are encouraged to pay a contribution in kind rather than a fee. 4 Higher Education 3.12. Tuition fees for HE courses are set by the College following discussion with HE partners and HEFCE. Fees for 2014/15 have been agreed as follows: £5,500 for Full Time courses and £2,750 for Part Time courses School Pupils 3.13. Students under the age of 16 as at 31st August 2013 are not eligible for Agency funding without express written permission from the Agency. Therefore where school pupils attend the College on a part time basis as part of their school education the funding is negotiated between the College and the school. The College receives significant benefits from working with schools in terms of progression to our FE programmes and as such, the College effectively looks to recuperate its costs only in the delivery of schools related activity. 3.14. Since the Agencies will not fund courses taken by learners aged under 16 who wish to take an evening class out of school hours it is College policy to charge the course fees as quoted in the part-time prospectus (providing prior approval for the enrolment is given by the school, the parent/guardian and the Course Leader or lecturer). International Students 3.15. Since Agency funding only extends to home or European Union (EU) learners, it is College policy to charge other learners (international Students) a special international fee determined and agreed by both Vice Principals. Any agreed additional learning support will be charged in addition to this fee. Commercial Work 3.16. Adhoc commercial work will be assessed on an individual project basis and must be commercially viable. Deviations from Fee Policy 3.17. It will remain the policy of the college to authorise each Faculty Head to challenge the tuition fee to be charged for any of the learning aims delivered by his/her department. 3.18. The challenge can only be from a commercial perspective i.e. by proposing a fee or the packaging of a program that does not comply with the guidance above in order to generate increased revenue for the College. 3.19. The challenge must be documented and presented to the Vice Principal Curriculum who will provide further assistance to build a business case where appropriate. 5 3.20. Any variations must have prior approval from the Vice Principal Curriculum who has the final say in the matter. Financial Support 3.21. Learners may be able to obtain financial support for fees or other costs where they are experiencing difficulty in commencing or continuing their studies. Learners should contact the Infozone which is located in the reception area of the College. 4. Fee Remission Policy Adult Learners Full-Time 4.1. The College follows Agency policy in that tuition fees are not charged for adult learners, who are eligible for fee remission, 19-23 year olds studying for their first full level 2 qualifications, or for 19-23 year olds studying for their first full level 3 qualification. It is also College policy that no full-time adult learner will be charged fees for any key or functional skills. College Staff 4.2. Tuition fees for Agency funded part-time courses attended by College staff are normally remitted subject to the approval of the line manager and budget holder. If attendance would fall inside of the normal contracted working hours this must be agreed in advance with the line manager along with an agreed amended working pattern. 4.3. College staff will be charged the registration fee only although this fee can be waived by the Human Resources Manager only if the course is considered as essential staff development. 4.4. This remission does not apply for the Certificate in Education course. Higher Education 4.5. HE learners wishing to enrol for part-time Agency funded courses are not entitled to fee remission. These learners are eligible to apply to the College LSF for assistance in paying the course fees for any Agency funded qualification. 4.6. Learners aged 24+ undertaking a Certificate or Diploma course at Level 3 or above are not entitled to fee remission. These learners must to apply to the Student Finance England for help with their fees or cover their own fees. 6 5. Examination and Registration Fees 5.1. All learners whose fees are not eligible for remission are normally charged the fee set by the examination boards/awarding bodies for entering examination at the time of enrolment. 5.2. It is currently College policy that examination entry fees are not charged to 19+ learners whose tuition fees are eligible for remission provided the following criteria are met: It is the learner’s first attempt at the examination at this centre. The relevant subject lecturer approves the entry. If a learners examination entry is not supported by his/her lecturer (for example due to poor attendance or lack of progress), the examination fee is charged. 5.3. 19+ learners retaking examinations previously undertaken at the College may be charged the examination fee, which would be payable prior to the examination entry. 5.4. 19+ learners who fail to take the examination without good reason are charged the examination/awarding body fee, except where the absence is due to illness and a doctor’s certificate can be provided. 5.5. The policy to remit examination fees for those learners aged over 19 whose tuition fees are remitted does not extend to the cost of registration with a professional body such as AAT, CMI and NEBOSH, these fees must be paid by the learner or employer. 6. Other Fees 6.1. Some programmes require material, equipment and/or clothing, an additional separate charge may be made for these and learners should check before enrolling on the course. These fees must be paid by all learners or employers. 7. Refund of Fees 7.1. It is College policy that a full refund of fees paid by learner/employer is approved only in the following circumstances: If a course is cancelled by the College. If a learners complaint regarding the quality of the delivery of a course or about the advice/guidance provided and verified by the Head of Student Services following an investigation in accordance with the College’s complaints procedure. It is expected that any complaints will be made within 3 weeks of the issue arising and this will be taken into account in deciding whether a refund will be made. 7.2. It is College policy to approve a pro-rata refund calculated on the basis of the number of actual attendances less a £30 administrative charge in the following circumstances: 7 If a learner withdraws from a course due to illness or as a result of a change in employment or having to leave the area for employment reasons. If a learner notifies the College to cancel his/her place on a course before the commencement of the course. 7.3. All other requests for fee refund will be at the discretion of the Vive principal Curriculum and will only be considered in exceptional circumstances 7.4. Learners requesting refunds must apply in writing to the Vice Principal Curriculum who will pass any approved refunds to the Finance department for processing. 7.5. A refund of exam fees will only be made if a learner withdraws his/her entry for an examination and the College is able to obtain a refund from the examination board. 8. Payment 8.1. Costs to the learner of the programme of study will be identified as fully as possible and communicated to the learner in a timely manner. 8.2. Fees will be due at time of enrolment however instalment options are available (see below). 8.3. Employers or sponsors who are funding learner’s fees must provide the learner with a letter of support for them to submit at enrolment stating that they will be funding the learning. Letters must be the original, on headed paper and signed, no photocopies will be accepted and the learner will not be able to enrol without this letter of support. 8.4. HE learners are expected to pay on enrolment, unless their employers are paying or they are awaiting a decision from the Student Loans Company (SLC), for both of which formal evidence must be provided. Learners are informed to bring a copy of the SLC document when received, and if this shows that the SLC will not pay, the learner will be invoiced. Instalments 8.5. Instalment programs are only available to individual learners, not employers. 8.6. All fees should be paid in full at time of enrolment unless the learner makes a specific request to pay in instalments. 8.7. Learners with course fees of £150 to £300 can pay in three instalments via credit card or standing order. The payment profile to be: 50% on enrolment 25% one calendar month after enrolment 25% one calendar month later 8 8.8. Learners with course fees of over £300 must pay an initial deposit at enrolment of 25% and the balance in up to 8 monthly instalments via credit card, standing order or post-dated cheques. 8.9. Payment in full must have been made by the beginning of April or one month before the end of the course. 9. Debtors 9.1. It is proposed that College policy be applied to the following sanctions for any learner who has not paid their tuition fees in full at the end of the academic year. Exam certificates will be withheld. References for employment will not be issued. 9.2. The learner will not be permitted to progress to the next year of study or another course at the College. 9.3. Any student who falls into arrears with their proposed payment plan and fails to bring the arrears up to date when requested can be removed from their program of study. 9.4. The College employs normal business processes to recover amounts due. This will involve invoicing, debt chasing, referral to debt collection agency, and ultimately court action. 10. Distribution 10.1. All staff and students via the intranet 9 Appendix 1 Tuition Bands Fee Band description HF HP HD V1 V2 V3 Full Time - Higher Ed Part Time - Higher Ed Part Time - Foundation Degree NVQ band 1 - F/T College based NVQ band 2 - Mixed / Part time NVQ band 3 - Work based A B C D E F G H I J K L M N O P Q R S T Part Time Fee Band 9 to 19 GLH Part Time Fee Band 20 to 29 GLH Part Time Fee Band 30 to 39 GLH Part Time Fee Band 40 to 49 GLH Part Time Fee Band 50 to 59 GLH Part Time Fee Band 60 to 89 GLH Part Time Fee Band 90 to 119 GLH Part Time Fee Band 120 to 149 GLH Part Time Fee Band 150 to 179 GLH Part Time Fee Band 180 to 209 GLH Part Time Fee Band 210 to 239 GLH Part Time Fee Band 240 to 269 GLH Part Time Fee Band 270 to 299 GLH Part Time Fee Band 300 to 329 GLH Part Time Fee Band 330 to 359 GLH Part Time Fee Band 360 to 389 GLH Part Time Fee Band 390 to 419 GLH Part Time Fee Band 420 to 449 GLH Part Time Fee Band 450 to 539 GLH Part Time Fee Band 540 to 729 GLH Proposed Fee @ 50% for those aged 1923 and 24+ Award Qualifications 5500 2750 2750 1575 735 540 54 97 135 174 212 270 405 520 636 751 867 982 1098 1213 1329 1444 1560 1675 1902 2441 10 Appendix 2 Full government funding Provision Learner Learners aged 16-18 on the 31st August 2014 1 16-18 learners 2 English and maths qualifications and units to help adults progress to GCSE A* to C (Level 2) Learners aged 19 and over 3 Traineeships to help young people progress to an Apprenticeship or other job Young people aged 16 to 24 4 Qualifications and units (up to and including Level 2) to help adults into work Learners aged 19 and over 5 Qualifications and units (Level 3 or above) to help adults into work 6 Entry and Level 1 qualifications (not English, maths or ESOL) to help adults to progress to their first full level 2 Learners aged 19 to 23 Learners aged 19 to 23 7 First full Level 2 qualification Learners aged 19 to 23 8 First full level 3 qualification Learners aged 19 to 23 Contributory Government Funding (Co-Funded) The SFA will contribute funding, as shown in table below, to promote shared responsibility for investing in skills, recognising that in most cases, and especially at higher levels, most of the benefit goes to the learner by way of increased wage gains and progression and to the employer by having a higher skilled, more productive workforce. Provision Learner 1 Intermediate-level Apprenticeships (Level 2) Apprentices aged 19 and over 2 Advanced-level Apprenticeships (Level 3) Apprentices aged 19 and over 3 Higher Apprenticeships (at Levels 4,5 and 6) – nonprescribed HE qualifications 4 Entry, Level 1 and Level 2 qualifications Apprentices aged 19 and over Learners aged 19 and over who do not qualify for full-funding 11 Learners aged 19 to 23 who do not qualify for full-funding 5 Level 3 or 4 qualifications Learners aged 24 and over have access to 24+ Advanced Learning Loans 12
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